You will find that mediators are at the heart of the dispute-resolution scene in London. In a capital rife with domestic and indeed international complex conflicts. Be they commercial, property, employment, family or construction in nature, mediation has become the preferred means of settling legal disputes without the expense and animosity of a full court case.
The city is well provided for in this regard, boasting a deep bench of seasoned professionals – from independent full-time mediators to barristers, ex-judges and solicitor-mediators whose standing is attested to by the likes of Legal 500, Lexology and other expert publications.
Put simply, a mediator is a neutral third party who’s role it is to help broker a settlement between people or organisations. They do not hand down a binding verdict as an arbitrator or judge would; rather they steer the conversation, put assumptions to the test and point out risk so that both (all ) sides can arrive at something workable. It is an appealing proposition in London where a commercially sound answer is usually wanted over a protracted legal fight.
A mediators caseload is varied. You will have your run-of-the-mill commercial and contractual tangles: supply contracts, joint ventures, shareholder claims and the like. Employment issues come up too, from discrimination to exit negotiations. On a more personal level, family mediators sort out the details of separation, children and finances.
Then there is property and housing, which covers everything from a row with a neighbour to co-ownership disputes. Online directories and websites such as the Civil Mediation Council, Effective Dispute Solutions and CEDR also highlight some of the most sought after and experienced mediators who specialise in matters over inheritance, professional negligence and public sector disputes.
Construction is one area where mediation is particularly effective. These disputes are and can be particularly messy, with multiple parties, technical evidence and damaged relationships on top of the usual delays and payment claims. A mediator provides developers, contractors and insurers with a private way to deal with it all in a way that litigation or arbitration would not allow, and industry observers are quick to say the two are well matched.
Cost is perhaps the biggest drawback. Once you start factoring in barrister fees, expert evidence and hearings, a court claim is no longer cheap. Mediation tends to be a much shorter affair, often wrapped up in a single day after some preparation. There is speed to it as well; you do not have to wait months for a trial date while positions harden. And it is confidential, which is important if you want to safeguard your reputation. The flexibility is another plus: a settlement might involve an apology or revised terms of business, things a court cannot order.
How a mediator works will depend on their style. Some are facilitative and content to let the parties talk it through, others are more evaluative and will probe the legal merits of a case head on. It is important that the parties highlight to their mediator at the appointment stage what model and approach they want them to adopt. Facultative or evaluative otherwise this can affect how the mediation is run, if the parties expected one and received the other.
In the world of law and construction you will often find a preference for someone with subject-matter expertise who can reality-test you without losing their neutrality.
Fees are not set in stone and will reflect the seniority of the mediator and the case at hand. For example a mediator for a building dispute can cost from between £750 - £1500 a day per party. Which is a far cry from the £5,000 to £30,000+ you might face with a solicitor in court.
But for a commercial or construction matter in London, expect to pay a premium for a top-ranked KC or leading barrister. Especially if you had a claim that was £100,000+. Effective Dispute Solutions gave an example of a recently mediated construction dispute in the capital.
Their lead mediator Harvinder Singh Bhurji explained it was a typical construction scenario in London. A developer was extremely frustrated with a contractor over a twelve-week delay and spiralled costs. He felt that the work on an office refurbishment, in particular the heating, ventilation and air conditioning unit fitted was shoddy at best.
The contractor relied upon his own experts report, which claimed the real culprit was the late design changes and delays in payment. Proceedings were threatened and instigated with the developer bringing a claim for £280,000. By this point their relationship was in tatters.
Barely speaking to one another, and all communication being through their respective legal parties. Eventually an expert from Effective Dispute Solutions London mediators panel was appointed.
After only one day of joint and separate meetings a settlement eventually was brokered, and the court proceedings could be stayed following the terms of the settlement agreement.
The parties had agreed that the contractor would return back to site to put in the remedial works as per the schedule they had set, and in return the developer would let go of some of the money (£45,000) held back right away.
The remaining balance due was contingent on hitting the new deadlines and milestones the parties both set together. Both parties agreed to put aside their broader claims for damages. It is a sensible way to keep the project on track and spare the expense of lawyers without having to face the unknowns of a full trial.
You could say that in London, mediators have become a fixture in how disputes are settled in all manner of industries. From construction and property to family, employment or commercial matters, mediation is the preferred course for a quicker, more confidential and usually cheaper resolution. In a city where you can have high value, high pressure conflicts at play, there is no better strength than the pragmatic approach these professionals bring to the table.